Gold ETF see highest monthly outflow of Rs 230 cr in June: Crisil

MUMBAI: Gold exchange traded funds saw monthly outflows of Rs 230 crore in June 2012, the highest ever in the category, said Crisil the rating company in a research report. According to the Association of Mutual Funds in India assets under Gold ETFs fell by 2.2% over the month to Rs 10,100 crore in June.

"The outflows from this category could be primarily because of profit booking after the price of the underlying metal rose sharply in the past one year due to global risk aversion and domestic buying," said the report.

Gold prices represented by the Crisil Gold Index have risen 34% in the one-year period ended June 29, 2012.

The mutual fund industry's month-end assets under management fell by 1.5% to Rs 6.89 trillion in June 2012 primarily due to outflows in money market funds which witnessed cyclical quarter-end outflows due to withdrawals by corporates.

Equity funds assets rose by 5.4% or Rs 9200 crore to Rs 1.8 trillion in June compared with fall of 5.1% or Rs9200 billion in May.

"The rise in month-end assets of equity funds was primarily due to mark-to-market gains from the underlying equity markets despite the category witnessing marginal outflows (Rs 3 billion) in the month," said the report.